If you happen to acquired advance Baby Tax Credit score (CTC) month-to-month funds final yr, try to be getting Letter 6419 from the IRS. This letter particulars the entire advance funds you acquired final yr and allows you to know the way a lot of the credit score you possibly can nonetheless anticipate to say when submitting your 2021 tax return.
Nevertheless, the IRS just lately introduced that some letters is perhaps inaccurate. Whereas this solely appears to affect a small group of individuals, incorrect letters may lead dad and mom to say a much bigger credit score quantity than they qualify for. Right here’s what it’s essential to know.
Who’s receiving inaccurate CTC letters and why?
The IRS has mentioned the individuals more than likely to obtain inaccurate Baby Tax Credit score letters may fall into one of many following classes:
- You moved in December 2021
- You modified financial institution accounts in December 2021
Resulting from both of the circumstances above, your final month-to-month CTC cost could have been undeliverable, or your direct deposit could have bounced out of your previous checking account, inflicting your final month-to-month cost to be delayed.
How do I discover the proper CTC quantity I acquired final yr?
If you happen to suspect your letter could also be exhibiting an inaccurate quantity, you possibly can log in to your IRS On-line Account to view the CTC funds you acquired final yr and examine that quantity to your financial institution information. The IRS urges you to make use of the quantity listed in your On-line Account when submitting your tax return to make sure your numbers match up with what the IRS has on file for you.
In case your CTC numbers differ from what the IRS has on file, your return possible will probably be flagged, and your tax refund may very well be considerably delayed. So it’s all the time good to double-check!
Warning for married submitting collectively {couples}: Letters despatched to taxpayers who filed as married submitting collectively are being despatched to every partner individually with solely their half of the funds acquired. This implies married taxpayers will every obtain a letter, and so they might want to mix the knowledge from the letters once they file their joint return. If the advance funds whole differs between their Letter 6419 and their IRS On-line Account, depend on the entire in their On-line Account.
What ought to I do if I didn’t obtain my December cost?
If you happen to didn’t obtain one in all your month-to-month funds final yr, log in to your On-line Account to evaluate your funds and see if the lacking cost was returned. If the cost was not returned, you possibly can contact the IRS at 800-908-4184 to hint the cost. When contacting them, be prepared to supply the lacking cost’s date, technique, standing, and the quantity displayed in your On-line Account.
If the IRS determines your cost to be returned or lacking, you gained’t have to incorporate the lacking cost in your tax return. If eligible, you’ll have the ability to declare the lacking cost as a part of your 2021 return as a substitute.
For any extra questions in regards to the 2021 CTC funds, try the IRS’s useful FAQ web page.
How may reporting incorrect CTC funds affect my 2021 tax return?
Utilizing an incorrect cost quantity out of your CTC letter will affect the quantity you possibly can declare for the credit score once you file. This might lead some taxpayers to both declare an excessive amount of on their tax returns or not get all that they’re owed.
In the end, reporting a cost quantity that doesn’t match what the IRS has as an official determine in your On-line Account will create an intensive delay within the processing of your return.
We’ll replace this web page because the IRS releases extra detailed info, so sit tight!
